Chainlink (LINK) has been pretty bullish lately and is now in the top 50. It now ranks 48th on coin market at the time of writing this article. In the day, it is up by over 15%, making it one of the best performing coins. But outside of today’s massive pump, is Chainlink a worthy investment. Does it have the potential to hold on to its value going into the future? To understand this, let’s go through some of the core fundamentals of Chainlink (LINK) and understand its possible long-term prospects in the market.
- The problem it is trying to solve
One of the best ways to determine whether a crypto is a good investment or not, is to look at the complexity of the problem it is trying to solve. The more complex the problem is, the bigger the intrinsic value of a crypto. It is pretty much the same for all other technologies. In the case of Chainlink (LINK), the problem it is trying to solve is pretty complex. That’s because there is a huge gap in terms of connecting smart contracts to external data. This is a huge bottleneck to the adoption of smart contracts in the business world. Chainlink makes it possible to connect smart contracts to external data, securely and reliably. This gives it a huge utility in the writing and execution of smart contracts that are targeted at key industries such as the financial services industry, where smart contracts will have a strong use-case going into the future. In essence, on the basis of the problem Chainlink is trying to solve, chances are that it will continue to grow in value, going into the future. Its growth will be in tandem with the acceptance of decentralized protocols in the business world.
- Partnerships and potential partnerships
Another key parameter to determine whether a crypto is good is its partnerships. If it has huge partnerships, it is a sign that it’s needed in the market. Chainlink ranks quite well on this parameter. It has gained a wide range of partnerships in different industries. Yesterday, Gamedex announced that they would be partnering with Chainlink to facilitate the integration of smart contracts in the development of fantasy games. Here’s what Gamedex COO had to say about this partnership.
“We’re excited to work with Chainlink to power a whole new generation of decentralized games.”
But this is not the only partnership that Chainlink has gained so far. From their website, they also have partnerships with SWIFT, Gartner, IC3 and Z among others. These are respectable global organizations, and the fact that they have a use case for Chainlink is a pointer to its good future in the markets. Not many cryptos have managed to gain such high level partnerships. These are huge partnerships, and they are quite visible in its price stability in the last 8 months. While Chainlink (LINK) has lost value in this period, it has definitely held its value better, relative to the rest of the market.
- The coin supply
Coin supply does matter in crypto. If a coin has a very large number of number of coins circulating, it can hinder chances of any major price gains. On this parameter, Chainlink is a worthy investment. It has a capped supply of 1 billion coins, and a circulating supply of 350 million coins. That’s a low coin supply relative to most other coins in the market. This gives it room to grow in value, in a bull market. It’s easier for Chainlink (LINK) to rise to a high of $5, for instance, as compared to a coin that has 10 billion coins in circulation.